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Can Natural Gas Sales Boost Buoy Coterra (CTRA) Q4 Earnings?
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Coterra Energy Inc. (CTRA - Free Report) is set to release fourth-quarter results on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.15 per share on revenues of $2.2 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the December quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream energy company beat the consensus mark due to robust commodity prices and strong production. CTRA had reported adjusted earnings per share of $1.42, 6 cents above the Zacks Consensus Estimate. Moreover, revenues of $2.5 billion generated by the firm came in above the Zacks Consensus Estimate of $2.4 billion.
CTRA beat the Zacks Consensus Estimate in three of the last four quarters, which resulted in an earnings surprise of 6%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 38.6% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 3.2% decline from the year-ago period.
Factors to Consider
CTRA is likely to have cashed in on the surge in hydrocarbon realizations. In the to-be-reported quarter, Coterra’s average realized unit prices for oil and natural gas are likely to have been $83 and $5.33, respectively, well above the year-ago levels of $75.61 and $4.43. The increase in price is most likely to have buoyed the fourth-quarter revenues and cash flows of Coterra.
The company is also expected to have reaped the reward of robust natural gas revenues during the quarter. CTRA continues to churn out an impressive output from its assets in the Permian basin, Marcellus Shale and Anadarko basin. Consequently, the consensus mark for the company’s gas sales is pegged at $1.4 billion for the fourth quarter, up 7.1% year over year. Investors should know that natural gas makes up most of CTRA’s production.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for CTRA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Coterra has an Earnings ESP of +1.77% and a Zacks Rank #3.
Other Stocks to Consider
Coterra is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Par Pacific Holdings, Inc. (PARR - Free Report) has an Earnings ESP of +6.79% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 22.
For 2022, Par Pacific Holdings has a projected earnings growth rate of 539%. Valued at around $1.6 billion, PARR has gained 79.3% in a year.
Image: Bigstock
Can Natural Gas Sales Boost Buoy Coterra (CTRA) Q4 Earnings?
Coterra Energy Inc. (CTRA - Free Report) is set to release fourth-quarter results on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.15 per share on revenues of $2.2 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the December quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream energy company beat the consensus mark due to robust commodity prices and strong production. CTRA had reported adjusted earnings per share of $1.42, 6 cents above the Zacks Consensus Estimate. Moreover, revenues of $2.5 billion generated by the firm came in above the Zacks Consensus Estimate of $2.4 billion.
CTRA beat the Zacks Consensus Estimate in three of the last four quarters, which resulted in an earnings surprise of 6%, on average. This is depicted in the graph below:
Coterra Energy Inc. Price and EPS Surprise
Coterra Energy Inc. price-eps-surprise | Coterra Energy Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained the same in the past seven days. The estimated figure indicates a 38.6% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 3.2% decline from the year-ago period.
Factors to Consider
CTRA is likely to have cashed in on the surge in hydrocarbon realizations. In the to-be-reported quarter, Coterra’s average realized unit prices for oil and natural gas are likely to have been $83 and $5.33, respectively, well above the year-ago levels of $75.61 and $4.43. The increase in price is most likely to have buoyed the fourth-quarter revenues and cash flows of Coterra.
The company is also expected to have reaped the reward of robust natural gas revenues during the quarter. CTRA continues to churn out an impressive output from its assets in the Permian basin, Marcellus Shale and Anadarko basin. Consequently, the consensus mark for the company’s gas sales is pegged at $1.4 billion for the fourth quarter, up 7.1% year over year. Investors should know that natural gas makes up most of CTRA’s production.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for CTRA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Coterra has an Earnings ESP of +1.77% and a Zacks Rank #3.
Other Stocks to Consider
Coterra is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Par Pacific Holdings, Inc. (PARR - Free Report) has an Earnings ESP of +6.79% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 22.
For 2022, Par Pacific Holdings has a projected earnings growth rate of 539%. Valued at around $1.6 billion, PARR has gained 79.3% in a year.
You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +0.21% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 23.
For 2022, EOG has a projected earnings growth rate of 59%. Valued at around $69.6 billion, EOG has gained 6.1% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.